The Florida Retirement System Actuarial Assumption Conference on Thursday lowered the $140.8 billion pension fund's assumed rate of return to 7.5% from 7.6%, said John Kuczwanski, spokesman for the Florida State Board of Administration, Tallahassee, which oversees the pension fund.
Further adjustments are expected in the coming years to bring the assumed rate more in line with current projections for future markets, Mr. Kuczwanski said.
Last year, the retirement system's assumed rate of return was reduced by 5 basis points from 7.65%.
The state's pension contributions are expected to increase by $124 million next year as a result of the change, Mr. Kuczwanski said.
The pension fund returned a net 13.77% in the fiscal year ended June 30. It returned a net 0.61% in fiscal year 2016.
Amy Baker, coordinator for the office of economic and demographic research and a member of the actuarial assumption conference, was not immediately available for further information.